1. What proportion of the blame for Air Canada’s difficulties rests with the top management of Air Canada, and what proportion rests with the company’s unions? Defend your answer.

2. Air Canada has had a difficult relationship with its unions in the past. What can management and labour do to increase the chance that the two groups will work together more smoothly in the future? Describe both general and specific actions that might be taken.

3. As a result of the 2004 bankruptcy proceedings at Air Canada, workers reluctantly agreed to job cuts in various areas so that Air Canada could reduce its labour costs. Do you think that agreements like that may cause workers in Canada to be less likely to join unions because they fear the union will not be able to protect their jobs if times get tough at a company?

4. Consider the following statement: “If a company encounters financial difficulties, it should be allowed to change the provisions of a collective agreement with its labour unions.” Do you agree or disagree with the statement? Explain your reasoning.